
Title:
Valuation of the liability structure by real options
Author:
Heller, David, author.
ISBN:
9781119988311
9781119988304
Physical Description:
1 online resource.
Series:
Innovation, entrepreneurship, management series. Modern finance, management innovation & economic growth set ; volume 5
Innovation, entrepreneurship, management series. Modern finance, management innovation & economic growth set ; volume 5.
Contents:
Front Matter -- The Utility of Real Options in the Valuation of Liabilities -- The New Allocation of Company Value Using the Optional Approach -- Applications of Real Options on Financial Structure Valuation -- Conclusion -- Appendices. Partial Derivatives in the Option Price Equation by Galaï and Masulis (1976) -- Partial Derivatives for Systematic Risk of Company Debt by Galaï and Masulis (1976) -- Partial Derivatives for Systematic Risk of Company Equity by Galaï and Masulis (1976) -- Proof of Inequalities by Galaï and Masulis (1976) -- Partial Derivatives in the Option Price Equation by Bellalah and Jacquillat (1995) -- Characteristics of Companies in the CAC 40 -- Valuation of Companies in the CAC 40 Using the Black-Scholes-Merton Method -- Distribution of Debt Relative to the Rate of Recovery (CAC 40) -- F-Equality Test of Variances for Asset and Equity Volatility (CAC 40) -- Equality Test for Projected Asset and Equity Volatility (CAC 40): Two Observations with Equal Variations -- F-Equality Test of Variances for the Growth Potential of Stock Prices Using the DCF and Real Options Methods (CAC 40) -- Equality Test for Projected Potential Growth of Stock Prices Using the DCF and Real Options Methods (CAC 40): Two Observations with Equal Variances -- F-Equality Test of Variances for Debt Ratios Based on an Accounting and Economic Net Debt (CAC 40) -- Equality Test of Projected Debt Ratios Based on an Accounting and Economic Net Debt (CAC 40): Two Observations with Different Variances -- Characteristics of Companies in the Cinema Industry -- Valuation of Companies in the Cinema Industry Using the Black-Scholes-Merton Method -- F-Equality Test of Variances for Asset and Equity Volatility (Cinema) -- Equality Test for Projected Asset and Equity Volatility (Cinema): Two Observations with Equal Variances -- F-Equality Test for Potential Growth of Stock Prices Using the DCF and Real Options Methods (Cinema) -- Equality Test for Projected Potential Growth of Stock Prices Using the DCF and Real Options Methods (Cinema): Two Observations with Different Variances -- F-Equality Test of Variances for Debt Ratios Based on an Accounting and Economic Net Debt (Cinema) -- Equality Test for Projected Debt Ratios Based on an Account and Economic Net Debt (Cinema): Two Observations with Equal Variances -- Significance Test for the Difference Between Two Standard Deviations -- Bibliography -- Index -- Other titles from iSTE in Innovation, Entrepreneurship and Management
Abstract:
The valuation of the liability structure can be determined by real options because the shares of a company can be regarded as similar to the purchase of a financial call option. Therefore, from this perspective, debt can be viewed as the sale of a financial put option. As a result, financial analysts are able to establish different valuations of a company, according to these two financing methods. Valuation of the Liability Structure by Real Options explains how the real options method works in conjunction with traditional methods. This innovative approach is particularly suited to the valuation of companies in industries where an underlying asset has high volatility (such as the mining or oil industries) or where research and development costs are high (for example, the pharmaceutical industry). Integration of the economic value of net debt (rather than the accounting value) and integration of the asset volatility are the main advantages of this approach.
Local Note:
John Wiley and Sons
Genre:
Electronic Access:
https://onlinelibrary.wiley.com/doi/book/10.1002/9781119988311Copies:
Available:*
Library | Material Type | Item Barcode | Shelf Number | Status | Item Holds |
|---|---|---|---|---|---|
Searching... | E-Book | 597636-1001 | HG6042 | Searching... | Searching... |
